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European paper industry shows signs of a strong post-Covid recovery: CEPI report

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Update time : 2022-07-15 15:57:23

The annual statistics for the European pulp and paper industry were published by CEPI (Confederation of European Paper Industries ) on July 7. They offer a unique view of the current state of the market for pulp and paper products and the industry’s performance. They also allow for an objective analysis of deeper trends behind the industry’s resilience.  


Post-Covid recovery 

Like other industries, in 2021 pulp and paper showed signs of a strong post-Covid recovery, as paper and board consumption increased by 5.8%, outperforming the overall rebound of the euro area GDP. As a result of these positive trends, paper, and board production also increased by 6.1%. The sector’s operating rate, the capacity at which paper mills are operated, has reached 90% over the year, compared to 85% in 2020. Positive trends are also recorded for the first quarter of 2022, with the sector surpassing in the first quarter of 2022 its 2021 first quarter production levels. 



Renewed demand 

The growth was driven by a renewed demand both in domestic markets and globally. Exports exceeded the levels achieved in 2019, registering strong growth in sales to North and South American markets. Currently, 22% of paper production from Cepi members is exported. 

The crisis of the coronavirus pandemic also accelerated certain trends, observed over the past decade. The rise of e-commerce boosted the paper and board packaging market, while it benefited from the substitution of other solutions, often triggered by the EU Single Use Plastics Directive. The production of packaging grades reached an all-time high in 2021, increasing by 7.5% compared to 2020. The most impressive growth was registered for the production of wrapping grades, used for paper bag production, which increased by 11.6%. It benefitted from the EU-backed phase-out of plastic packaging. 


Covid-related effect 

Another Covid-related effect on paper markets has been the development of the hygiene market segments. Demand for paper for sanitary uses has seen a correction effect, with the peak of the pandemic now behind us, and it should benefit from higher hygiene requirements over the long term. 

Graphic paper markets have, after a very negative impact in 2020, bounced back in 2021. Cepi figures also show that, after significant investments by the sector, the recycling of paper is increasingly performed in Europe, surpassing 50 million tonnes in 2021 for the first time, while exports of paper for recycling decreased by 18% compared to 2020. 



Statistic developed in-house

Cepi annual statistics are developed by an in-house dedicated team and cover the countries represented by the Confederation of European Paper Industries. They are released in the summer, reporting on the previous year, with a mid-term preliminary report published early in the year. They are based on data collected from national associations in the sector reporting, in between other indicators, on production and consumption. The data quality check is performed following an EU methodology, and the data is audited annually. 

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